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Assignment No 1 Subject: Principle of Accounting Class: Bs-Semester 1 Instructor: - Yasir Ali Rana Submission Date:06-December - 2020

This document contains an accounting assignment with three questions. [1] Question 1 defines key accounting terms like assets, liabilities, revenue, and expense and asks students to provide examples. [2] Question 2 explains the rules of debit and credit in accounting. [3] Question 3 provides several transactions and asks students to use the accounting equation to show the effect on assets, liabilities, and capital for three individuals running businesses. The assignment aims to test students' understanding of fundamental accounting concepts.

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64 views2 pages

Assignment No 1 Subject: Principle of Accounting Class: Bs-Semester 1 Instructor: - Yasir Ali Rana Submission Date:06-December - 2020

This document contains an accounting assignment with three questions. [1] Question 1 defines key accounting terms like assets, liabilities, revenue, and expense and asks students to provide examples. [2] Question 2 explains the rules of debit and credit in accounting. [3] Question 3 provides several transactions and asks students to use the accounting equation to show the effect on assets, liabilities, and capital for three individuals running businesses. The assignment aims to test students' understanding of fundamental accounting concepts.

Uploaded by

qamar shah
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Assignment no 1

Subject: Principle of Accounting Class: Bs- Semester 1st

Instructor :- Yasir Ali Rana Submission Date:06-December -2020

Question No. 1

Define the following terms with suitable example:

1. Accounting
2. Business Entity Concept
3. Debtor
4. Creditor
5. Capital
6. Drawing
7. Assets
8. Liabilities
9. Expense
10. Revenue
11. Cash and trade discount
12. Accounting cycle

Question No. 2

➢ Explain the rules of debit and credit

Question No. 3

Solve the given question of accounting equation:

Question 3.1:
Abib Ullah Sadiq is wholesale trader; following transactions are record in Accounting
Equation?
i. Commence business with cash Rs. 200,000 and Land Rs. 50,000.
ii. Bought merchandising for cash Rs. 80,000.
iii. Cash sales of worth Rs. 25,000.
iv. Bought goods on credit from Salman of worth Rs. 50,000.
v. Sales on account to Ali Raza Rs. 12,000.
vi. Purchase furniture of the value of Rs. 5,000 by cash.
vii. Received cash form Ali Raza of Rs. 10,000.
viii. Return defective furniture of worth Rs. 1,500.
xi. Paid wages Rs. 1,000, Rent 2,000 and Electricity Bill Payable Rs. 1,500.
Question 3.2:
Muhammad Faizan Abid had the following transactions. Use accounting equation to
show their effect on his Assets, Liabilities and Capital?
a) Invested Rs. 15,000 in cash.
b) Purchased securities for cash Rs. 7,500.
c) Purchased a home for Rs. 15,000: giving Rs. 5,000 in cash and the balance through
loan account.
d) Sold securities costing Rs. 1,000 for Rs. 1,500.
e) Purchase an old car for Rs. 2,800 cash.
f) Received cash as salary Rs. 3,600.
g) Paid cash Rs.500 for loan and Rs. 300 for interest.
h) Paid cash for expenses Rs. 300.
i) Received cash for dividend on securities Rs.200.

Question no 3.3

Prove that the Accounting Equation is satisfied in all following transactions of Wajeeha Ejaz
owner of business enterprises?
I. Started business with cash value of Rs. 500,000.
II. Rent paid in advance for a year Rs. 6,000.
III. Purchased merchandising inventory for cash Rs. 80,000 and on account Rs. 20,000 from Mr.
Tahir.
IV. Purchased Marketable securities for cash Rs. 100,000.
V. Cash Sales Rs. 30,000 (cost 20,000).
VI. During the period rent expires Rs. 2,000.
VII. Commission paid during the trading was Rs. 1,000.
VIII. Received cash dividend Rs. 4,000 on marketable securities.

Good Luck

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